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International Business Machines IBM Return on invested capital

Return on invested capital at other companies

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IntelINTC
-3.8%-1.3pp
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MicrosoftMSFT
26.7%-1.2pp
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Fair IsaacFICO
66.4%+13.8pp
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PTCPTC
19.3%+8.6pp
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NetAppNTAP
68.2%+5.9pp
Amazon logo
AmazonAMZN
14%-3.8pp

Other financials

Income statement

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Revenue$15.9B+9.5%
Gross profit$8.9B+11.4%
Net income$1.2B+15.3%
EPS (diluted)$1.28+14.3%

Balance sheet

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Cash & equivalents$10.9B-2.7%
Total debt$77.4B+4.9%
Total equity$33.0B+22.7%
Total assets$156.23B+7.2%

Cash flow

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Operating cash flow$5.2B+18.3%
CapEx$232.0M-4.9%
Free cash flow$4.9B+19.7%

Valuation

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Market cap$246.58B-1.3%
Enterprise value$313.07B+0.3%
P/E22.9×-22.7×
P/S3.6×-0.4×

Profitability

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Gross margin58.4%+1.3pp
Net margin15.6%+6.9pp

Returns & leverage

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Return on equity35.9%+14.1pp
Debt / equity2.3×-0.4×
Current ratio0.8×-0.2×

Where this comes from

Calculated from International Business Machines’s reported figures.

Based on trailing twelve months.

The official record: International Business Machines’s 10-Q, filed April 23, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is International Business Machines's return on invested capital?
International Business Machines (IBM) reported return on invested capital of 13.2% in Q1 2026.
How has International Business Machines's return on invested capital changed year-over-year?
International Business Machines's return on invested capital increased by 44.6% year-over-year, from 9.2% to 13.2%.
What is the long-term trend for International Business Machines's return on invested capital?
Over 3 years (2022 to 2025), International Business Machines's return on invested capital has grown at a 24.4% compound annual growth rate (CAGR), from 24.5% to 47.2%.
What does return on invested capital mean?
The after-tax return the business earns on all the capital — debt and equity — invested in it.
How do you interpret return on invested capital?
The cleanest measure of business quality: ROIC sustained above the cost of capital creates value, below it destroys value. Compare against WACC, not against zero.
How does return on invested capital compare across companies?
Highly comparable across companies as a quality screen. Sector-sensitive definitions of invested capital mean banks/insurers are best excluded.